Buffett/derivatives: Nebraska hold ‘em

For a man who once famously called derivatives «financial weapons of mass destruction, « Warren Buffett has amassed quite an exposure to them. Berkshire Hathaway has, for instance, written credit derivatives contracts that leave it on the hook for around $5bn if certain junk bonds all default. The Berkshire chairman, however, isn’t your typical player in the credit default swap market. First off, Berkshire has 54 different contracts, most likely covering dozens of different corporate risks. In ...